The fit-out finance problem

Kitchen and fit-out equipment in New Zealand hospitality is frequently financed through the equipment supplier or a lender they have a relationship with. These arrangements are convenient — the supplier handles everything at the time of purchase — but they're not always the most competitive option for the borrower.

Rates of 25–35% per annum on hospitality equipment finance are not unusual in New Zealand. For a business already operating on tight margins, that rate has a significant impact on cashflow every single month.

What many operators don't realise is that once the business is established and trading — typically 12 months or more in — they become eligible to refinance that facility at a much lower rate through a specialist lender.

What refinancing actually means

Refinancing your kitchen equipment finance simply means replacing your existing high-rate facility with a new one at a lower rate. The equipment itself becomes the security for the new loan — no property required. Your existing facility is paid out, and you start making repayments on the new, lower-rate arrangement.

The difference in monthly repayments can be significant. On a $150,000 kitchen facility, reducing your rate from 30% to 13% p.a. can save more than $25,000 in interest over a three-year term. On a $250,000 full fit-out, the saving is proportionally larger.

Rates from 13% p.a. for eligible hospitality businesses. Subject to lender assessment and credit profile. Individual results will vary.

What equipment can be refinanced?

Specialist hospitality finance covers a wide range of assets:

New finance is available for new fit-outs and equipment purchases as well — not just refinancing. If you're planning a kitchen upgrade or fit-out and want to finance it at a competitive rate from the start, that's also an option.

What do you need to apply?

For amounts under $100,000:

For amounts over $100,000:

The process is straightforward. Most applications for amounts under $100,000 can be assessed same-day with bank statements only.

Is my business eligible?

Eligibility depends on your trading history, credit profile, and the nature of the equipment being refinanced. The lender will assess the business as a whole — not just the existing finance facility.

Generally speaking, businesses with 12+ months of trading, consistent revenue, and a clean credit history are strong candidates. New businesses can also access this type of finance for new equipment purchases, though the assessment criteria may differ slightly.

Available for new and established businesses

You don't need to have been trading for years to access hospitality equipment finance. New businesses fitting out a commercial kitchen can finance that equipment from the start at competitive rates — rather than accepting whatever the equipment supplier's finance partner offers.

If you're planning a fit-out and want to get the finance right before you sign equipment contracts, that's the best time to have the conversation. We can help you understand what's available before you commit to any particular arrangement.

The hospitality margin reality

Hospitality is one of the toughest industries in New Zealand from a margin perspective. Labour costs, food costs, rent, and seasonality all put pressure on the bottom line. High-rate equipment finance is one of the few costs that can be actively reduced without changing anything about how the business operates.

If you're paying 30% on your kitchen finance and you're eligible to refinance at 13%, the question isn't really whether to do it — it's why you haven't done it already.